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Hyundai Heavy Industries (HHI), the world's largest shipbuilder and a leading marine engine maker, has announced that it produced the world's first high-pressure selective catalytic reduction (HP SCR) system for the "dramatic reduction" of nitrogen oxide (NOx) emissions from two-stroke marine engines.

The HP SCR is said to be able to reduce NOx emissions up to 99 percent by using ammonia as a catalyst, and thus comply with IMO NOx Tier III requirements that took effect in January 2016.

The eco-friendly marine engine add-on has been built to run on heavy fuel oil, which has a lower cost than marine gas oil.

HHI completed the certificate test of the HP SCR - the fruit of an 18-month-long research and development programme - in December 2015 with the presence of DNV-GL. The first HP SCR is slated to be installed in a 20,600-cubic-metre LPG carrier under construction at Hyundai Mipo Dockyard, a shipbuilding affiliate of HHI, on February 5, 2016.

HHI has won the orders of five HP SCR to date, and set the annual order target of more than 100 units by 2018.

"In response to the harsh challenges in the shipbuilding industry, Hyundai Heavy industries is stepping up efforts to develop new technologies targeted at the market demands for eco-friendly, more efficient and smarter ships," HHI said in a statement.